Hi Susan Veeh ,

Since it looks like you are using Sage 50 US, I am going to move this post to that Support Group so that other users of this software will see it and can offer you their thoughts and insight.

Regarding the payroll issue you're experiencing. It's important to rectify such mistakes promptly, here's a guide through the process.

Since you've already deducted an extra $100 from your employee's paycheck and need to reimburse them, while also ensuring their W-2 reflects the correct amount for 2023, you have a couple of options:

1. Creating a Supplementary Paycheck:

   • If you cannot edit the original paycheck because it has already been issued, you can create a supplementary paycheck.
   • In this supplementary paycheck, enter the refund amount of $100 in the appropriate field, with no salary amount included. This will adjust the net amount and should correct your payroll records.

2. Adjusting Future Paychecks:

   • Alternatively, if the situation allows, you can adjust the fields in question on a future paycheck. This means deducting less in the next pay period(s) to compensate for the over-deduction.

Remember to ensure that these adjustments are properly documented and reflected in your General Ledger (G/L) account. If you choose to write them a check outside of the payroll system, make sure this transaction is correctly coded in your G/L to reflect the reimbursement.

It's crucial to ensure that all payroll adjustments are accurately tracked in your payroll module for correct W-2 reporting. For further assistance or if the issue persists after updating, please visit Sage.com/Resources for support options or join us at Sage Q&A Live for real-time answers.

Hope that this helps, happy holidays!

Erzsi

Thank you so much. This is what I was expecting for an answer.  Just needed a second opinion!

Much appreciated.